Sharechat Logo

NZ manufacturing keeps growing in December quarter, rundown in stocks bodes well for 2013

Friday 8th March 2013

Text too small?

New Zealand manufacturing volumes continued to grow in the final three months of 2012, and a rundown in stocks outside food and beverage bodes well for the sector this year as construction gets underway in Canterbury and Auckland.

Total manufacturing sales volumes rose a seasonally adjusted 1.5 percent in the three months ended Dec. 31, slowing from a 2.5 percent gain in the September quarter, according to Statistics New Zealand. The value of manufacturing sales was flat at a seasonally adjusted $22.85 billion. Volumes were up 5.7 percent from the same period a year earlier, while values were down 0.7 percent on an annual basis.

Metal product manufacturing sales volumes rose 5.4 percent, and values climbed 6.6 percent to $2.31 billion, leading gains in the quarter. Petroleum and coal product manufacturing sales volumes gained 6.4 percent and values were up by the same amount to $1.92 billion.

Meat and dairy manufacturing, which accounts for 30 percent of the sector, showed a 1.1 percent fall in volumes and a 4.4 percent decline in sales to $6.86 billion.

"While still an increase, this is something of a reversal from the previous quarter, when high meat and dairy manufacturing sales more than compensated for falls in other manufacturing industries," industry and labour statistics manager Blair Cardno said.

Stripping out the meat and dairy sectors, manufacturing sales volumes rose 1.3 percent and sales were up 1.8 percent to $15.99 billion. The volume of closing stocks of finished goods shrank 6.8 percent in the quarter, and was down 2.9 percent from a year earlier.

Doug Steel, economist at Bank of New Zealand, said the increase in volumes continued the trend of the past three quarters, though "prices were not all that flash."

"The rundown in stocks give you a bit of optimism for 2013 if demand does strengthen on construction," he said.

The official government figures come the same day as a New Zealand Manufacturers' and Exporters' Association survey showed an increase in export sales in January compared to a year earlier.

The NZMEA has been a vocal critic of the government and Reserve Bank for not providing more support for local firms competing with cheap imported rivals and reduced competitiveness abroad due to the strength of the currency.

Last month, the Bank of New Zealand-Business NZ performance of manufacturing index showed the sector grew at its fastest pace in eight months in January, with the strongest growth in Canterbury/Westland probably reflecting demand for building materials.

BusinessDesk.co.nz



Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.
Bookmark and Share   Printable version
Related News

NZ wool prices decline as buyers favour South Island wools; lamb wool leads fall
Saville's Utilico sells more Infratil shares, whittling stake down to 2.5%
Wynyard says it has nothing to disclose after NZX queries 21% price slump
Merged Fairfax, NZME would have just 12% of NZ digital ad market dominated by Google, Facebook
Silver Fern shareholders to vote again on Shanghai Maling deal in July
Carbon hits $15 a tonne benchmark following Budget ETS decisions
Comvita seeks to build SeaDragon stake with $3 mln convertible loan
Lion, NZ's largest beer company, agrees to buy cult Upper Hutt brewer Panhead, no price given
Charity organisation Pact Group backs out of Invercargill social housing contract
Airways gives airlines a break with cheaper prices, small operators face price hike

IRG See IRG research reports